Shopper Marketing - April 2016 - 24


PROGRAMS

Data Drives Innovation
at Kroger
Retailer's digital and 84.51° executives talk personalization
at NRF's Big Show
By Samantha Nelson

neW York - Kroger has traditionally been
slow to adopt new shopper marketing technologies, but that measured approach is driven by the retailer's focus on catering to its
most loyal customers.
Yael Cosset, chief information officer at
Kroger subsidiary 84.51°, described the Cincinnati-based agency's work tracking and using vast amounts of customer data during a
presentation at the National Retail Federation Retail's Big Show in January. "The better I know my customer, the better I am at
delivering that personal experience," he said.
"Our customers are changing every day. If you
look at the customer 15 years ago and the
customer today, you could not believe this is
the same geography, the same demographic
or the same store."
For Kroger, one loyal customer is worth
eight non-loyal customers, and harnessing
data about its most valuable shoppers' past
behavior allows them to shape future offers
and marketing content to their needs. Kroger
and 84.51° build demographic profiles for
their customers to tailor their shopping experience, which involves understanding not just
that a shopper cares about specific products
24

y SHOPPER MARKETING APRIL 2016

but the drivers that led to the purchase, such
as an aspiration to be healthier or a need to
stay within a specific budget.
"Customer needs are very different," said
co-presenter Matt Thompson, Kroger vice
president, digital business. "One of the things
that we've been working on for a decade is
what does it mean to take data and personalization and deliver that to customers?"
The retailer has decided that new technology alone cannot meet its personalization.
While Kroger does use its data to develop
custom emails, which have a 50-70% open
rate, the supermarket operator also uses that
information to shape how to design stores,
the products and services offered at each location, and its private-label brands.
"For us, its not just about a sexy app," Thompson said. "We've got millions of customers in
our store every day, so bringing that customization to life is going to be about technology
and our associates. It all needs to come together in a way that's relevant to the customer."
That also means being slow to abandon
traditional tactics. Kroger also still relies heavily on direct mail and has found that 60% of
households that receive its mailers redeem



Table of Contents for the Digital Edition of Shopper Marketing - April 2016

Contents
Shopper Marketing - April 2016 - Intro
Shopper Marketing - April 2016 - 1
Shopper Marketing - April 2016 - 2
Shopper Marketing - April 2016 - 3
Shopper Marketing - April 2016 - Contents
Shopper Marketing - April 2016 - 5
Shopper Marketing - April 2016 - 6
Shopper Marketing - April 2016 - 7
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